Paying with cash instead of credit card could save you money with your favorite retailers

July 21, 2010|South Florida Sun-Sentinel

Now that President Obama has signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, consumers spending cash instead of credit may see discounts at their favorite retailers.

The new law allows retailers to offer special discounts for anyone using cash, check or debit card as opposed to the guy or gal next to you using a credit card for the same purchase. The notion here is that consumers spending cash will have less opportunity to rack up expensive credit bills, interest fees and late-payment fees.

My neighborhood gas station already cuts two or three cents off each gallon of gas I pay for in cash, so the movement is already afoot.

I consider it an old-school throwback to the days when my mom shopped solely with cash to buy our family’s food, clothes and other necessities. And she made sure to pay off any credit card balances she did post each month.

One more thing to keep in mind: The new federal law allows retailers to reject your credit card for purchases under $10.

What do you say? Let us know if your favorite retailer is offering discounts for cash vs. credit purchases.